Tag Archive | "IPOs"

Swee hong engineering construction IPO

Swee hong engineering construction IPO

Singapore civil engineering firm Swee Hong Engineering Construction is planning an initial public offering to raise about $20 million, a source familiar with the plan told Reuters.

The source declined to be identified as he was not authorised to speak to the media.

Swee Hong is involved in several projects including the upcoming “Gardens by the Bay”, a new tourist attraction, the company said on its website.

Singapore’s IPO market has picked up this month after a dull start to the year as equity markets recover and bankers become more confident about listing

Swee Hong’s IPO is being managed by China Construction Bank, which is trying to gain a foothold in Singapore’s equity capital market. The Chinese bank managed property and construction group TA Corporation’s IPO late last year.

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Cordlife group limited ipo

Cordlife group limited ipo

Cordlife Group Limited (“Cordlife” or the “Company”) was set up in Singapore. It has 2 core businesses: cord blood banking and umbilical cord tissue banking. It was previously listed on Australia Stock Exchange and known as Cygenics Limited.It now focuses on 3 countries, Singapore, Hong Kong and China. Revenue grew from S$22.6m in FY2009 to S$25.7m in FY2011 while profit grew from S$6.2m to $8.5m during the same period. The Company intends to distribute 25% of its profit attributable to shareholders for FY2011 and FY2012.The Company will issue 60m shares (2m public 58m placement) at Singapore 49.5 cents each. The offer will close on 27 March at 12pm. Assuming the service agreement was in place and based on the enlarged share cap, the EPS for FY2011 was 3.94 cents and that translate into a listing PER of 12.56x. The market cap at the issue price is S$104.5m.Frankly to me, the business model is somewhat like a “specialized” storage hub whereby tenants pay a yearly rental to rent a storage space. Cordlife charges a one time fee as well as a fixed period of 5 or 10 years followed by an annual fee for the next 13 or 8 years. The blood can be stored up to a 18 years. I think the likelihood of ‘tenants’ switching from one storage to another is low and the ‘loyalty’ is high since they have already sunk in the most expensive investment at the birth of their children. It is an interesting business model.

ASX shareholders received Cordlife shares as part of the restructuring a few years back. After the listing Singapore public holds about 26% while the ASX investors hold about 47%. Interestingly, the CEO only holds 0.57%. In my view, there is not much ‘skin in the game’ for him. In addition, i don’t really like companies that does a lot of financial engineering and you can see that the shareholders are all experts in this area. Cordlife Limited (ASX:CBB) that is listed on ASX only has 2 profitable years from 2004 to 2011. In this regard, i dont think the ASX shareholder that receive shares of Cordlife Group Limited are “happy” shareholders. I think they will be the first to run for the exit door if the share price performs well.
Assuming the EPS remained unchanged from FY2011, the dividend per share will be around 3.94 cents x 25% = 0.985 Singapore cents. That translate into a yield of 1.99%. The yield may provide some downside protection as listing PER is high but the question for me remains whether the Company will be able to sustain and grow its income in the coming years.


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F1 explores $10 billion IPO in Singapore?

F1 explores $10 billion IPO in Singapore?
adapted from asiaone

Bernie Ecclestone ,president of Formula One’s governing body, is reportedly preparing a $10 billion (S$12.6 billion) flotation of the sport on an Asian stock exchange.
Singapore and Hong Kong are believed to be potential venues, according to several media reports.
Ecclestone said CVC would be better off exiting the business via an IPO in Singapore rather than selling it, reported UK’s Sunday Telegraph.
Declining to be named, a source told Bloomberg that CVC Capital Partners, owner of Formula 1, has hired Goldman Sachs Group Inc (GS) to explore the move.
The proposal also includes giving Ferrari, the oldest team in F1, a stake in the new holding company while Red Bull will get extra cash.
The news was first broken by Sky News but has since been removed from its website after a few hours on Saturday night.

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HPH Trust (NS8U.SG) closes at US$0.985 on 25th march 2011

HPH Trust (NS8U.SG) closes at US$0.985 on 25th march 2011

HPH trust (NS8U.SG) remains the most traded counter on the singapore stock exchange since its debut on 18th March Friday afternoon.

A dismal IPO showing due largely to the Japan earthquake dampened sentiments and saw the counter fall to a low of 0.905 on 22nd March. However a series of stablising trades from 18th to 25 march by the stablising manager, Deutsche Bank AG who bought a total of 188 million shares enabled the stock to recover much of the losses.

We expect the stablising actions to continue at least until the counter reaches its IPO pricing. This in addtion to a report by Credit Suisse which says HPH Trust could peak within two weeks of its debut due to its inclusion in MSCI is gving a very strong BUY signal for HPH Trust(NS8U.SG)

Long term outlook on the stock is also very positive as according to Goel of Drewry.

“Based on its business trust structure and mature ports, being able to actually list and raise proceeds in the billions is already considered a success,” says Goel, who believes the trust could have fared much worse. “The weakness we are seeing is true of the entire equities market in general. HPH Trust is a fundamentally strong yield play with a reputable name and should stabilise over the next few weeks once the volatility subsides.”

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Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon

Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon

Credit Suisse says HPH Trust (NS8U.SG) could peak within two weeks of its debut this afternoon, based on GLP (MC0.SG) and CapitaMalls Asia’s (JS8.SG) historical share price performance.

The house says on its IPO price of US$1.01 ($1.29), HPH Trust would have a market cap of $11 billion, the 18th-largest stock in Singapore, and is expected to be included by MSCI to its indices, with an announcement possibly by this evening.

The house notes GLP and CMA were both included by MSCI immediately upon listing; GLP jumped 11% on its debut while CMA rose 8%.

“GLP peaked on the 10th trading day (+18% over the IPO price), one day before being effectively included in the MSCI index. CMA peaked on the 14th day (+27%) over its debut, two days after being included in the index. Interestingly, both GLP and CMA returned nearly all their outperformance within 100 days post their debut.”

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Hutchison Port Trust Traded Below IPO Sale Price in Gray Market, BTIG Says

Hutchison Port Trust Traded Below IPO Sale Price in Gray Market, BTIG Says

Hutchison Port Holdings Trust, having raised $5.5 billion in the largest initial public offering this year, traded below its IPO price in the gray market as Asian equities fell following an earthquake in Japan.

Units of the container-terminal owner were sold for 98 cents yesterday in deals brokered by BTIG Hong Kong Ltd., Managing Director Christian Kielland said by e-mail. The trust, which holds assets from Li Ka-shing’s Hutchison Whampoa Ltd. (13), priced units in its IPO at $1.01.

Asian equities have tumbled this week, sending the MSCI Asia Pacific Index toward its biggest weekly decline since May, because of concerns that electricity shortages and radiation leaks from a nuclear-power plant crippled by the quake may disrupt production in Japan. HPH Trust begins trading on the Singapore Exchange at 2 p.m. today.

The trust, which owns terminals in Hong Kong and neighboring Shenzhen, sold about 5.4 billion units in the IPO. The price range was initially set at 91 cents to $1.08 before being narrowed to 99 cents to $1.03, according to term sheets.

The trust’s terminals handled a record 21.2 million 20-foot containers last year, 17 percent more than in 2009. The trust has room to develop 12 more berths in Shenzhen’s deepwater Yantian port, with the first three expected to be completed by 2015, Ivor Chow, chief financial officer of the trust’s manager, said at a Singapore press briefing last week.

World’s Busiest
Hong Kong and Shenzhen, in China’s Pearl River Delta, form the world’s busiest container market, Hong Kong-based Hutchison Whampoa said in a Jan. 18 statement. Hutchison Whampoa, controlled by billionaire Li, will retain about 25 percent of the trust and manage it.

Hutchison Whampoa rose 0.2 percent to HK$85 at 11 a.m. in Hong Kong. It’s dropped 8.4 percent since March 10, the last day of trading before the temblor. The company, the world’s largest container-terminal operator, also invests in drugstores, real estate and mobile-phone services.

Laura Cheung, a Hutchison Whampoa spokeswoman, wasn’t immediately available to comment. DBS Group Holdings Ltd. (DBS), Deutsche Bank AG (DBK) and Goldman Sachs Group Inc. (GS) managed the trust’s sale.

Cornerstone investors led by Capital Research & Management Co. and Paulson & Co. invested $1.62 billion in the IPO, according to the prospectus filed with the Monetary Authority of Singapore.

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net

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HPH Trust sets IPO at US$1.01 per unit

HPH Trust sets IPO at US$1.01 per unit

SINGAPORE: Hutchison Port Holdings Trust (HPH Trust) said it has set the price for its Singapore’s initial public offering at US$1.01 per unit, below the top end of its indicative price range of US$0.91 and US$1.08.

The trust also said that it has allowed the joint book runners, led by Deutsche Bank, to exercise an over-allotment option, which gives them the right to subscribe as much as 15 per cent of the public offer.

If the over-allotment is exercised in full, parent Hutchison Whampoa, which is controlled by Hong Kong billionaire Li Ka-shing, would raise over US$6 billion from the listing, making it the largest IPO in both Singapore and Southeast Asia, exceeding last year’s US$3 billion offering by Global Logistic Properties and the US$4.1 billion Malaysian IPO by Petronas Chemicals.

The money raised by HPH Trust will be used to pay for the port assets that it is buying from Hutchison Port Holdings, which is 80 per cent-owned by Hutchison Whampoa and 20 per cent by Singapore’s PSA International, a wholly owned unit of Temasek Holdings.

– CNA/cc

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Hutchison Port Said to Lower Amount Sought in Singapore IPO

Hutchison Port Said to Lower Amount Sought in Singapore IPO

March 10 (Bloomberg) — Hutchison Port Holdings Trust reduced the maximum amount it may raise in southeast Asia’s biggest initial public offering to $5.56 billion, two people with knowledge of the matter said.

The company, which manages Chinese port assets for billionaire Li Ka-shing’s Hutchison Whampoa Ltd., is offering about 5.4 billion units in a trust at 99 U.S. cents to $1.03 each in Singapore, said the people, who declined to be identified before an announcement. The units were initially offered at 91 cents to $1.08 each, according to a sale document sent to investors on Feb. 28.

Investors are cooling on Asian equities as unrest in the Middle East pushes oil prices higher and accelerating inflation from China to India prompts central banks to boost borrowing costs. The MSCI Asia Pacific Index has slipped 1 percent this year after gaining 14 percent in 2010.

“They are trying to ensure the deal will go off with a very solid book, so it’s the best outcome for both Hutchison and potential investors in the trust,” said Anderson Chow, an analyst at Macquarie Capital Securities.

China Hongqiao Group Ltd., the country’s largest privately owned aluminum producer, in January scrapped a plan to raise as much as $2.2 billion from a Hong Kong IPO, citing “deterioration in market conditions,” according to a Jan. 31 filing to the city’s stock exchange.

Cornerstone Investors

The narrower pricing range was earlier reported by the Wall Street Journal on its website. Laura Cheung, a spokeswoman at Hutchison Whampoa in Hong Kong, declined to comment.

Hutchison Port Holdings Trust will own assets including container terminals in Hong Kong and neighboring Guangdong province. Hutchison will manage the trust and retain a 25 percent stake, according to a Jan. 18 statement. The sale may still surpass the $4 billion raised in Singapore Telecommunications Ltd.’s 1993 IPO and the total amount raised in IPOs in the city-state last year.

Cornerstone investors led by Capital Research & Management Co. and Paulson & Co. will invest $1.62 billion in the IPO, according to the prospectus filed with the Monetary Authority of Singapore.

Capital Research will invest $634 million in the offering, according to the term sheet. Paulson & Co., managed by John Paulson, will buy a $350 million stake and Lone Pine Capital LCC will invest $186 million, it said. Jenkin Hui and family, Singapore’s state investment company Temasek Holdings Pte, Cathay Life Insurance Co. and Metropolitan Financial Services Ltd. will each invest $100 million, and Ally Holding Ltd. will buy a $50 million stake.

Goldman Sachs Group Inc. and Deutsche Bank AG are among banks managing the sale. Edward Naylor, a Hong Kong-based spokesman for Goldman Sachs, and Mark Bennewith, a Deutsche Bank spokesman in Singapore, declined to comment.

–With assistance from Weiyi Lim in Singapore. Editors: Lars Klemming, Philip Lagerkranser.

Adapted from Bloomberg.com

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GBPUSD 1.38820 1.38850 3
USDCAD 1.24350 1.24380 3
USDJPY 111.060 111.080 2
USDCHF 0.95880 0.95910 3
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EURGBP 0.88120 0.88150 3
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EURJPY 135.890 135.920 3
AUDJPY 88.750 88.800 5
GBPJPY 154.170 154.230 6
XAUUSD 1327.60 1328.00 40
XAGUSD 16.941 16.991 5